In general, there are only 7 different movements a market can do. Today's traders must master each type of market movement to be able to take full advantage of all different types of markets. Knowing the 7 market movements ensures that the trader will rarely find themselves lost by anything the market does.
The 7 market movements are the building blocks to understanding and mastering Market Mechanics. We have already discussed the 7 market movements in detail in previous sections of this Wiki. Here we will review them with the understanding that there is nothing more the market can do.
There are no other types of movements to understand. Learn to master them and your trading results will prosper especially when you combine them with things like Fundamental Analysis or Sentiment Analysis.
This Wiki is part of the larger Price Action Analysis Wiki. You can access the Price Action Analysis Wiki HERE.
This Wiki is also a part of our Essential Forex Trading Guide. Be sure to check that out HERE.
The uptrend
Defined by higher highs and higher lows
The uptrend.
The Downtrend
Defined by lower highs and lower lows.
The downtrend.
The Sideways Trend
Defined by relatively equal highs and lows.
The Breakout
Price breaks out above major resistance.
The Breakdown
Price breaks down below major support.
The Uptrend Line Break
The uptrend line is broken by price and fails to break the prior high.
The Uptrend Line Break.
The Downtrend Line Break
The downtrend line is broken and price fails to break the prior low.
The Downtrend Line Break.